SCS Energy Closes Deal to Acquire HECA Project in Kern County

Wed Sep 28, 2011 9:54am EDT

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SCS Energy Closes Deal to Acquire HECA Project in Kern County

SCS Energy, one of the nation’s leading independent developers of clean power, announced today it has acquired a project to build a hydrogen-fueled polygeneration plant in Kern County, California.

One of the first of its kind in the world, this project will provide thousands of new construction jobs, permanent manufacturing jobs, and significant economic stimulus to the region.

The project is part of the Clean Coal Power Initiative (CCPI), a cost-shared collaboration between the federal government and private industry to increase investment in low-emission coal technology by demonstrating advanced coal-based power generation technologies at commercial scale. The project will be cost-shared and administered by DOE’s Office of Fossil Energy and the National Energy Technology Laboratory.

SCS Energy has acquired the Hydrogen Energy California (HECA) Project from BP and Rio Tinto. Private and federal investment to date has brought the project to the advanced permitting stage. SCS Energy is modifying the plant’s design, allowing it to produce both electricity and fertilizer.

Paul Meyers, SCS Energy’s Chief Financial Officer, said, “The combination of the two products, along with the beneficial use of CO2 to enhance nearby oil field production will make the plant cost effective and economical and enable the project to move forward.”

Such polygeneration provides the 400 MW Integrated Gasification Combined Cycle (IGCC) plant operational flexibility to better match market demand. For instance, the plant will produce more fertilizer in the evening when less electricity is needed, which optimizes the economic use of the facility.

The plant will capture 90% of the CO2 produced and transport it to an adjacent oil field, where it will be used for enhanced oil recovery and sequestered in deep, underground geological formations, furthering California’s low carbon power policies, adding to domestic oil production, and replacing imported high-carbon fertilizer with domestic low-carbon fertilizer.

The project has selected Fluor as its Engineering, Procurement and Construction contractor and has also selected the Oxygen-Blown Gasification technology of Mitsubishi Heavy Industries, Ltd.

Jim Croyle, SCS Energy’s Chief Executive Officer, said: “We are extraordinarily pleased to be taking over this project. During peak construction we expect to have more than 2,000 workers on site; in addition we will bring 140 much-needed permanent jobs to the local area while furthering significant environmental objectives in low-carbon manufacturing and power generation.”

The Department of Energy said it was pleased that SCS Energy has succeeded in acquiring the rights to this project and has agreed to undertake the obligations of the prior sponsors. The Department added it looks forward to working with SCS Energy to continue the development of this important polygeneration facility as a part of the Department’s carbon capture, utilization, and storage (CCUS) major demonstration portfolio.

SCS Energy is a private power plant development company headquartered in Concord, Mass. The company’s mission is to create high-value power generation assets that bring excellent returns to investors while leading the industry in environmental stewardship and climate change mitigation. Its award-winning 1100 MW power plant development in New York City helped stabilize the grid by solving a load pocket problem in Queens while helping to establish the use of air cooled condensing for power plants in New York.

For SCS Energy
Bob Rawitch, 213-248-5014
info@scsenergyllc.com
www.hydrogenenergycalifornia.com

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